Gold prices witness steep decline in Pakistan

KARACHI: Gold prices declined across the country on Friday, with a notable drop of Rs1,500 per tola.

According to the All Pakistan Sarafa Gems and Jewellers Association, the new price of 24-karat gold per tola now stands at Rs355,500.

Meanwhile, the price of 10 grams of 24-karat gold fell by Rs1,286, bringing it down to Rs304,783.

The gold prices in the local market nosedive amid fluctuating trends in the international market and a recent wave of corrections in local bullion prices.

In the international market, gold prices rose and were on track for a weekly gain, as investors turned to safe-haven assets amid growing concerns over the United States’ fiscal outlook and new trade measures announced by President Donald Trump.

Spot gold climbed 0.4 per cent to $3,340.79 an ounce by 0424 GMT, lifting its weekly rise to more than 2 per cent. US gold futures were also higher, up 0.3 per cent at $3,351. 

The gains followed the passage of Trump’s sweeping tax and spending package through Congress on Thursday. The legislation makes his 2017 tax cuts permanent, introduces fresh tax breaks tied to his 2024 campaign, and funds stricter immigration policies. 

KSE-100 SETS NEW HIGH

While the gold prices have witnessed a steep decline, the Pakistan Stock Exchange continued the record-breaking streak. The benchmark KSE-100 Index reached another all-time high on Friday, both during intraday trading and at closing.

Topline Weekly Review (Jul 04, 2025):

KSE 100 Index increased 6.09% on WoW basis, this positivity in market can be attributed to hefty buying by institutions on account of new liquidity being diverting towards equity on the back of lower yields and higher taxes on fixed income.… pic.twitter.com/e4ixpmExT6

— Topline Securities (@toplinesec) July 4, 2025

Analysts cited improved liquidity and sustained investors’ interest reflecting strong market confidence as the reason behind the current sustained trend.

By the time trading was closed, the KSE-100 Index gained 1,262.41 points, or 0.97 per cent, to end the week at 131,949 level.

Topline Securities attributed this positivity in the market to institutional buying on new allocation towards equity funds as indicated by the National Clearing Company data.

Investor confidence was buoyed by improved liquidity, as the country’s total liquid foreign exchange reserves rose to $18.01bn, Al Habib Capital stated.